- AUD/USD has extended the downside after dismal trade balance data which added to the series of poor news from the Aussie economy.
- Australia trade surplus narrowed in October, registered at 105M, below expectations at 1375M, exports dropped 3 percent.
- AUD/USD extends sell-off, trades 0.16% lower on the day at 0.7549 levels.
- The pair is attempting breach of 100W SMA at 0.7551. Next major support lies at 0.7535 (trendline).
- Break below 0.7535 could see weakness till 0.75 and the 0.7419 levels.
- Break above 50W SMA at 0.7662 finds next major resistance at 200-DMA at 0.7690. Further upside on break above.
Support levels - 0.7535 (trendline), 0.75 (78.6% Fib retrace of 0.73285 to 0.81250 rally), 0.7419 (88.6% Fib)
Resistance levels - 0.7585 (5-DMA), 0.7594 (20-DMA), 0.7662 (50W SMA)
Recommendation: Good to go short on break below 0.7535, SL: 0.76, TP: 0.75/ 0.7420
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -21.6105 (Neutral), while Hourly USD Spot Index was at 56.7382 (Neutral) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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